INSIGHTS
Strategic priorities in modern sustainability management
The landscape of sustainability management is undergoing a significant transformation, driven by technological advancements, increasing regulatory pressures and evolving stakeholder expectations. Our research has identified three key themes that are shaping the strategic priorities of sustainability leaders across various industries.
C. Adapting to changing regulatory and stakeholder expectations
1. Measuring the impact of sustainability programmes
Different organisations and projects often use varied approaches, making it difficult to get a collective view of impact on a national scale. That's why in the government we use more sophisticated approaches, like net present social value and examining gross value added. These provide a more comprehensive view of economic benefits.
Hariom Newport
HEAD OF ENVIRONMENT & SUSTAINABILITY, INFRASTRUCTURE AND PROJECTS AUTHORITY (IPA)
Quantifying and communicating the outcomes of sustainability efforts has become essential for organisations to track progress, demonstrate value and inform decision-making. Leaders are developing sophisticated approaches to measure the impact of their programs.
Measuring impact at a national scale presents unique challenges. As Hariom Newport from the IPA explains: "Different organisations and projects often use varied approaches, making it difficult to get a collective view of impact on a national scale. That's why in the government we use more sophisticated approaches, like net present social value and examining gross value added. These provide a more comprehensive view of economic benefits."
A structured approach to measurement is gaining traction across industries. Andy Brown from Anglian Water Group explains their process: "We underwent a process to identify material topics and set appropriate KPIs to deliver the desired outcomes and impacts. It's about considering what impacts and outcomes you are aiming to achieve, rather than just focusing on meeting the KPIs required by external reporting standards."
We have a sustainability strategy named 'Investing in Better', which includes ten goals across three main pillars. These pillars are: Closing the Loop, Work Smarter and Acting Responsibly.
Ethan O'Brien
GLOBAL DIRECTOR OF OPERATIONS SUSTAINABILITY, KLÖCKNER PENTAPLAST
Data collection gaps are becoming more apparent as organisations deepen their sustainability efforts. Hrabrina Nikolova from Westminster City Council highlights a crucial challenge: "We have substantial data on energy use for large schemes, but anything falling under 'Scope 3' has often been overlooked. This is crucial because we can never truly transition to a regenerative economy if we don't address material extraction." The Council is developing new platforms to address this gap, particularly in reviewing and scrutinising whole-life carbon assessments in planning.
Setting ambitious, quantifiable targets promotes sustainability efforts in some organisations. "We measure how much carbon we've saved for our clients," shares Chris Mattock from Mace Consult. "Initially, we set a target to save 1 million tons of carbon by 2026, which we achieved much faster than anticipated. So, we've increased that target to 10 million tons." This approach shows the effectiveness of clear, measurable goals in promoting progress.
Comprehensive sustainability strategies with clear goals are being implemented in various sectors. Ethan O'Brien from Klöckner Pentaplast describes their approach: "We have a sustainability strategy named 'Investing in Better', which includes ten goals across three main pillars. These pillars are: Closing the Loop, Work Smarter and Acting Responsibly."
We underwent a process to identify material topics and set appropriate KPIs to deliver the desired outcomes and impacts. It's about considering what impacts and outcomes you are aiming to achieve, rather than just focusing on meeting the KPIs required by external reporting standards.
Andy Brown
CHIEF SUSTAINABILITY OFFICER, ANGLIAN WATER GROUP
In the public sector, standardised protocols are being employed to measure building energy efficiency. Edward Barlow from Local Partnerships LLP explains their use of the International Performance Measurement and Verification Protocol (IPMVP): "It's a defined process for setting the baseline period, agreeing on how to model it forward and accounting for operational changes."
The importance of context in measurement is highlighted by Alistair Blackmore from Bidwells: "Saying we generate 700 cubic metres of waste annually might not resonate, but framing it as producing an Olympic swimming pool's worth of landfill waste every year paints a more striking picture." This approach helps make sustainability metrics more tangible and impactful.
For some organisations, sustainability measurement is closely tied to client impact. Andrew Mitchell from Mace Group describes their approach: "Our lead KPI for sustainability is what we call client carbon savings. Essentially, it's about what we offer our clients that goes beyond their expectations."
Our lead KPI for sustainability is what we call client carbon savings. Essentially, it's about what we offer our clients that goes beyond their expectations.
Andrew Mitchell
COMMERCIAL DIRECTOR
As sustainability becomes increasingly central to business strategy, the methods for measuring its impact are evolving. From standardised protocols to customised KPIs, organisations are finding ways to quantify their sustainability efforts that align with their specific contexts and stakeholder expectations. This trend towards more sophisticated measurement is likely to continue, driving greater accountability and effectiveness in sustainability initiatives.
